Golden Entertainment, a prominent gambling operator, has successfully concluded the sale of its distributed gaming operations in Montana to J&J Ventures Gaming for $109 million. This strategic divestiture is part of Golden Entertainment’s ongoing efforts to optimize its business operations. Additionally, the sale of gaming operations in Nevada, valued at $213.5 million plus approximately $34 million in purchased cash, remains pending, subject to regulatory approvals and closing conditions. This transaction reinforces Golden Entertainment’s commitment to refining its portfolio and enhancing its financial position.
Sale of Montana Gaming Operations:
Golden Entertainment has concluded the sale of its distributed gaming operations in Montana to J&J Ventures Gaming. This transaction was executed for a total consideration of $109 million, marking a significant step in streamlining the company’s operations.
Pending Sale of Nevada Gaming Operations:
In addition to the Montana transaction, Golden Entertainment has initiated the sale of its gaming operations in Nevada. This deal is valued at $213.5 million and includes around $34 million in purchased cash. The completion of this sale is contingent on fulfilling regulatory requirements and closing conditions.
Strategic Partnership with J&J Gaming:
Golden Entertainment has entered into a strategic five-year agreement with J&J Ventures Gaming. Under this partnership, J&J Gaming will provide support for the gaming operations of Golden’s branded tavern locations located in Nevada. This collaboration enhances the efficiency and synergy of both companies.
Fourth Quarter 2022 Financial Performance:
In the fourth quarter of 2022, Golden Entertainment reported total revenue of $279.7 million, representing a minor decrease of 1 percent from the same period in 2021, which recorded $282 million in revenue. Net income for Q4 2022 amounted to $11.1 million, or $0.35 per fully diluted share, compared to net income of $19.1 million, or $0.59 per fully diluted share, in Q4 2021. Adjusted EBITDA for Q4 2022 stood at $63.7 million, compared to $67.8 million for the same period in 2021.
Golden Entertainment’s successful sale of its distributed gaming operations in Montana to J&J Ventures Gaming marks a strategic move in the company’s ongoing efforts to optimize its portfolio and financial performance. This divestiture, along with the pending sale of gaming operations in Nevada, reflects Golden Entertainment’s commitment to refining its business and pursuing opportunities for growth and efficiency.